Thursday , 8 July 2021
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Digest - United Arab Emirates

Digest: United Arab Emirates

The United Arab Emirates (UAE) is a federation of seven emirates. Each emirate is an independent state governed by a ruler. The UAE is headed by Khalifa bin Zayed bin Sultan Al Nahyan who is the current President of the United Arab Emirates, the Emir of Abu Dhabi, the Supreme Commander of the Union Defence Force and the chairman of the Supreme Petroleum Council.

United Arab Emirates
United Arab Emirates
  • Population: 9.7 million people live in the UAE. For example, the population of New York state is 19.5 million people.
  • Religion: Islam
  • GDP per capita: 69896 USD (7th place in the overall ranking)
  • Currency: Dirham (AED). 1 AED = 0.27 USD.
  • Domain: .ae

Two most populous cities in UAE accommodate 6.5 million people.

Dubai (3,3 million people)

Foreign investors have tax breaks in Dubai because here are located so-called Free Economic Zones. Dozens of offices of major international companies were established here. In recent years the number of expatriates has significantly exceeded the indigenous population.

Dubai population history
One of most populous citiies in UAE is Dubai

Abu Dhabi (3,2 million people)

This city is the administrative, financial and transport centre of the region. It also receives revenues from the oil industry.

Abu Dhabi population history
Abu Dhabi is another of the most populous cities in the UAE.

Population

The indigenous population of the UAE is made up of extremely wealthy people. According to The UAE 2018 Wealth Report, more than 88,000 people with bank accounts worth $1 million live in the UAE, 4,000 people have $10 millions or more, and finally, there are 13 billionaires. Not bad for a country with a total population of 9.7 million, isn’t it?

Males make up 72% of the UAE population at 6.89 million, while the number of females accounts for only 28% of the total UAE population at 2.65 million.

The number of men under the age group 15 to 24 is double that of women in the same age group. The most significant difference, gender-wise, is seen in the age group 25 to 54. There are 4.83 million men within this age group in the UAE, whereas the number of women within this age group is just 1.46 million.

Population by gender
Hint: one-third of all women from UAE are overweight. Remember this when choosing the offer

The average salary varies from town to town. People from Abu Dhabi and Dubai have the highest income (~24000 AED). Then goes El Ain (~21000 AED). The lowest salaries are in Khor Fakkan (7800 AED), Ar-Ruwais (9200 AED) and Ras Al Khaimah (13100 AED).

Knowledge of English is a prerequisite for employment in the UAE. Take this into account when setting up your advertising campaigns.

Arabs and Arabic-speaking immigrants earn the most. The average salary for people from Russia, Belarus and Ukraine is 10000-30000 AED. Citizens of India, Pakistan and Bangladesh have the lowest income (~10000 AED). The reason is that most of them work in the service and construction sectors.

The average salary
The average salary

Internet and social networks

99% of all people in the UAE have Internet access, and that’s no joke. According to the statistics, 9,52 million people out of 9,6 million of the total population of UAE use the Internet. On average, UAE residents spend 3 hours a day on social networks and 8 hours on the Internet in total.

The traffic distribution is as follows:

  • Smartphones – 61%
  • PC – 36%
  • Tablets – 3%

The list of most popular social networks is pretty obvious:

  • Facebook – 7,88 million users (82% of the population)
  • Youtube – 7,88 million users (82% of the population)
  • Instagram – 5,86 million users (61% of the population)
  • Twitter – 4,61 million users (48% of the population)
  • Linkedin – 4,13 million users (43% of the population)
  • Pinterest – 2,4 million users (25% of the population)
  • Tumblr – 1,54 million users (16% of the population)
Popular social networks
Most popular social networks

The most popular websites are google.com, youtube.com, facebook.com, google.ae, instagram.com.

The most popular messengers are:

  • Whatsapp – 7,88 million users (82% of the population)
  • Facebook messenger – 6,05 million users (63% of the population)
  • Skype – 4,32 million users (45% of the population)
  • Snapchat – 3,08 million users (32% of the population)

eCommerce

eCommerce market grows rapidly from 2,5 billion in 2014 to $10 billion in 2018.

99% of UAE residents use the Internet; 85% of them have been looking for a particular product on the Internet this week. 91% of them have been online at least once in the last 30 days. 63% of these people have made an online order. This statistics applies to both smartphones and PCs.

Popular eCommerce product types are:

  • Software – 41%.
  • Electronics – 28%.
  • Clothes – 17%.
  • Fashion accessories – 14%.

The eCommerce segment is doing very well. For example, Amazon recently bought Souq.com (the largest eCommerce resource in the UAE) and allocated an additional $1 billion for its development. This industry has a bright future ahead of it.

The downside is that people don’t trust Internet payments. 75% of all eCommerce orders are paid by cash on delivery. Credit or debit cards are used in only 24% of cases. Digital payment systems (PayPal, Alipay) share just 1% of the market.

Conclusion

The UAE market is a gold mine. It would be foolish not to take advantage of this. Modern technologies, oil super income, high salaries and the purchasing power of the people form a broad target audience. The only downside is the fact that people in the UAE do not trust online payments.

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Author: Elmira Nikiforova

Social media and digital marketing professional with over 5 years experience working at Leadbit. I love comedy and dream of visiting 100 countries of the world.

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